3 April 2019
Myanmar’s economic growth is expected to raise in 2019 and 2020 due to higher foreign direct investment (FDI) and positive response to the government’s economic and policy reforms.
According to the Asian Development Outlook 2019 launched in Yangon on Wednesday.
The Asian Development Outlook utilizes data from related government bodies’ statistics and estimation on own key fundamentals.
It was conducted by the Asian Development Bank (ADB) and the survey particularly looked at sector of share of GDP growth, agriculture industry, service in the supply side and government’s investment, private investment and consumption in the demand side.
Principal Country Specialist, ADB Myanmar Resident Mission, Yumiko Tamura said “We maintain a very positive outlook for Myanmar’s economic growth of the next 2 years... The main drivers of such economic growth would be stronger domestic and international investment as well as growth in service sector. We assume good weather conditions will actually support agriculture performance”
It is forecasted that Myanmar’s economy will grow 6.6% in the fiscal year ending in September 2019 and 6.8% in 2020.
Growth in services is expected to rise to 9% in the fiscal year ending in September 2019 due to the growth in telecommunications and tourism related sub-sectors.
Meanwhile, growth in agriculture which accounts for a quarter of Myanmar’s GDP will slow to 0.5% during the same time period.
Principal Country Specialist, ADB Myanmar Resident Mission, Yumiko Tamura said “In the financial sector, the government has been working to open up some sub-sectors and we welcome such policy direction… Promising sectors are service sub-sectors such as telecom and trade and transport have been driving the economy growth.”
The Outlook also highlighted the importance of acceleration in economic reform which is implemented under the current government’s administration. Some of the key areas include public financial management, legal and regulatory framework and government’s capacity building which will contribute to sustainable economic growth as well as social and economic conclusion of the country.